Oil Prices Will Collapse: 5 High-Yield Energy MLPs Will Do Just Fine (One Yields 8%)

Oil markets have roared up and down in 2026, depending on the status of not only the war with Iran, but also the ongoing fighting between Russia and Ukraine. The reality is that it is quite likely that Iran is desperate to strike or come to some deal with the United States, as the Iranian economy is close to collapsing, according to many sources. Energy is the top-performing sector in 2026, and the State Street Energy Select Sector SPDR (NYSE:XLE) is up a stunning 38.60%, or 42% with dividends reinvested. If oil prices start to drop, some of the top dividend-paying energy stocks could struggle after a massive run this year. High-yielding midstream master limited partnerships (MLPs) could be the answer.

Midstream energy stocks are companies that process, transport, and store crude oil, natural gas, and natural gas liquids. These companies operate in the “midstream” sector, which falls between the upstream (exploration and production) and downstream (refining and marketing) sectors of the energy industry. They are far less susceptible to spot benchmark pricing moves, as most sector leaders have locked in contracts for their services, some of which run for years. We screened the sector for the high-yielding companies that make sense for growth and income investors seeking dependable passive income. They could also be a solid option for those who want to maintain an energy presence in their portfolios but want to take profit on the large-cap energy giants.

Here are five top energy MLPs that pay dependable dividends and have a Buy rating from top Wall Street firms; we cover them at 24/7 Wall St.

Why Do We Cover the High-Yielding Energy Dividend Stocks?

Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past 50 years (1973 to 2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Enbridge

Energy infrastructure company Enbridge (NYSE:ENB | ENB Price Prediction) owns and operates pipelines throughout Canada and the United States. This off-the-radar idea, based in Canada, is poised to break out to new highs and pays a rich 8% dividend. Enbridge announced its 31st consecutive annual dividend increase in 2026, lifting the payout by another 3%, and has paid dividends for over 70 years.

With roughly 98% of its annual earnings backed by long-term, fixed-rate contracts and regulated rate structures, the company stands out as one of the most defensive and reliable plays in the energy infrastructure sector. The company is the largest natural gas utility in North America by volume, delivering about 9.3 billion cubic feet daily to 7.1 million customers with a toll-road-like model that’s less exposed to price swings.

The company operates through five segments:

• The Liquids Pipelines segment operates pipelines and related terminals in Canada and the United States to transport various grades of crude oil and other liquid hydrocarbons.
• The Gas Transmission and Midstream segment invests in natural gas pipelines and gathering and processing facilities in Canada and the United States.
• The Gas Distribution and Storage segment is involved in natural gas utility operations, serving residential, commercial, and industrial customers in Ontario, as well as in natural gas distribution and energy transportation activities in Quebec.
• The Renewable Power Generation segment operates power-generating assets, including wind, solar, geothermal, and waste heat recovery facilities, as well as transmission assets, in North America and Europe.
• The Energy Services segment provides energy marketing services to refiners, producers, and other customers, as well as physical commodity marketing and logistical services in Canada and the United States.

Royal Bank of Canada has an Outperform rating and an $84 target price.

Energy Transfer

Energy Transfer (NYSE:ET) is one of North America’s largest and most diversified midstream energy companies. This top master limited partnership is a solid option for investors seeking energy exposure and income, paying a 6.56% distribution yield. Energy Transfer owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint across all major domestic production basins. The company exceeded second-quarter earnings expectations, and the stock appears poised to reach new highs.

The company is a publicly traded limited partnership with core operations that include:

• Complementary natural gas midstream, intrastate, and interstate transportation and storage assets
• Crude oil, natural gas liquids (NGLs), and refined product transportation and terminalling assets
• NGL fractionation
• Various acquisition and marketing assets

Following the acquisition of Enable Partners in December 2021, Energy Transfer owns and operates over 114,000 miles of pipelines and related assets in 41 states, spanning all major U.S. producing regions and markets. This further solidifies its leadership position in the midstream sector.

Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG Company; the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco (NYSE:SUN); and the public partnership interests and 39.7 million common units of USA Compression Partners (NYSE:USAC).

TD Cowen has a Buy rating on the shares, with a $24 target price.

MPLX

MPLX (NYSE:MPLX) is a diversified, large-cap master limited partnership formed by Marathon Petroleum. This company is one of the top holdings in the Alerian MLP Energy ETF, and it pays a healthy 7.35% dividend. The company primarily transports crude oil and refined products, with terminals in the U.S. Midwest and Gulf Coast regions, and gathers and processes natural gas in the Northeast, following its 2015 acquisition of MarkWest Energy.

The company’s assets include:

• Network of crude oil and refined product pipelines
• Inland marine business
• Light-product terminals
• Storage caverns
• Refinery tanks
• Docks
• Loading racks and associated piping
• Crude and light-product marine terminals

MPLX also owns:

• Crude oil and natural gas gathering systems
• Pipelines, natural gas, and NGL processing and fractionation facilities in key U.S. supply basins

Royal Bank of Canada has an Outperform rating, with a $60 target price.

Plains All American Pipeline

This stock traded in a tight range before breaking out and offers a dependable 6.43% dividend yield. Plains All American Pipeline (NYSE:PAA) engages in the pipeline transportation, terminalling, storage, and gathering of crude oil and NGLs in the United States and Canada.

The company operates in two segments. The Crude Oil segment offers:

• Gathering and transporting crude oil through pipelines
• Gathering systems
• Trucks, barges, or railcars
• Terminalling, storage, and other facilities-related services and merchant activities

The Natural Gas Liquids segment provides:

• Gathering
• Fractionation
• Storage
• Transportation
• Terminalling activities
• Ethane, propane, normal butane, iso-butane, natural gasoline, and crude oil refining processes

Mizuho has an Outperform rating with a $27 target price.

Western Midstream Partners

While somewhat off the radar, this is the highest-yielding stock in the group, with a 7.80% dividend yield, and it offers an outstanding entry point. Western Midstream Partners (NYSE:WES) acquires, owns, develops, and operates midstream assets.

The company gathers, compresses, treats, processes, and transports natural gas, and gathers, stabilizes, and transports condensate, NGLs, and crude oil. The company also collects and disposes of produced water.

The midstream assets are located in:

• Texas
• New Mexico
• Colorado
• Utah
• Wyoming

In addition, as a natural gas processor, the company also buys and sells natural gas, NGLs, and condensate on its own behalf and as an agent for its customers under specific contracts. The company’s subsidiaries include:

• Western Midstream Operating GP
• Western Midstream Services
• Western Midstream Services Holdings
• Western Midstream Operating

Mizuho has an Outperform rating and a $51 target price.

Consider This Exchange-Traded Fund (ETF)

Investors looking to avoid the pesky K-1s can buy shares of the ALPS Alerian MLP ETF (NYSE:AMLP), which pays a substantial 7.68% dividend. Investors receive a 1099 instead of the K-1 that direct MLP ownership requires.

Contact [email protected] for any questions or corrections.